DB:DUB1

Stock Analysis Report

Executive Summary

DRDGOLD Limited, a gold mining company, engages in surface gold tailings retreatment business in South Africa.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has DRDGOLD's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DUB1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.1%

DUB1

-8.6%

DE Metals and Mining

-0.9%

DE Market


1 Year Return

251.3%

DUB1

-22.0%

DE Metals and Mining

12.8%

DE Market

Return vs Industry: DUB1 exceeded the German Metals and Mining industry which returned -21.4% over the past year.

Return vs Market: DUB1 exceeded the German Market which returned 13.7% over the past year.


Shareholder returns

DUB1IndustryMarket
7 Day18.1%-8.6%-0.9%
30 Day24.5%-10.8%-0.2%
90 Day77.5%-11.3%3.0%
1 Year261.2%251.3%-21.2%-22.0%16.3%12.8%
3 Year28.9%22.3%-48.5%-50.0%15.8%5.7%
5 Year341.2%282.7%-45.5%-48.3%19.8%3.4%

Price Volatility Vs. Market

How volatile is DRDGOLD's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is DRDGOLD undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DUB1 (€0.69) is trading below our estimate of fair value (€3.32)

Significantly Below Fair Value: DUB1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DUB1 is poor value based on its PE Ratio (16.6x) compared to the Metals and Mining industry average (9.3x).

PE vs Market: DUB1 is good value based on its PE Ratio (16.6x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DUB1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DUB1 is good value based on its PB Ratio (2.6x) compared to the DE Metals and Mining industry average (4.1x).


Next Steps

Future Growth

How is DRDGOLD forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

13.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if DUB1's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if DUB1's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DUB1's revenue (13.3% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: DUB1's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DUB1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has DRDGOLD performed over the past 5 years?

29.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DUB1 has high quality earnings.

Growing Profit Margin: DUB1 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DUB1 has become profitable over the past 5 years, growing earnings by 29.8% per year.

Accelerating Growth: DUB1 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DUB1 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-8.6%).


Return on Equity

High ROE: DUB1's Return on Equity (15.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DRDGOLD's financial position?


Financial Position Analysis

Short Term Liabilities: DUB1's short term assets (ZAR972.3M) exceed its short term liabilities (ZAR462.6M).

Long Term Liabilities: DUB1's short term assets (ZAR972.3M) do not cover its long term liabilities (ZAR1.0B).


Debt to Equity History and Analysis

Debt Level: DUB1 is debt free.

Reducing Debt: DUB1 has no debt compared to 5 years ago when its debt to equity ratio was 5.3%.

Debt Coverage: DUB1 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DUB1 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: DUB1 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DUB1's debt is covered by short term assets.


Next Steps

Dividend

What is DRDGOLD's current dividend yield, its reliability and sustainability?

2.26%

Current Dividend Yield


Upcoming Dividend Payment

Purchase DRDGOLD before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.3%marketbottom25%1.3%markettop25%3.6%industryaverage6.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DUB1's dividend (2.26%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: DUB1's dividend (2.26%) is low compared to the top 25% of dividend payers in the German market (3.65%).


Stability and Growth of Payments

Stable Dividend: DUB1's dividend payments have been volatile in the past 10 years.

Growing Dividend: DUB1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.5%), DUB1's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Niel Pretorius (52yo)

11.1yrs

Tenure

R12,926,000

Compensation

Mr. Daniël Johannes Pretorius, also known as Niel, B.Proc., LLB, serves as Chief Executive Officer at DRDGOLD Ltd. since January 1, 2009. Mr. Pretorius served as the Chief Executive Officer of Ergo Mining  ...


CEO Compensation Analysis

Compensation vs Market: Niel's total compensation ($USD863.75K) is about average for companies of similar size in the German market ($USD1.19M).

Compensation vs Earnings: Niel's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniël Pretorius
CEO & Executive Director11.1yrsR12.93m0.089% ZAR517.2k
Adriaan Davel
CFO & Executive Director5.1yrsR7.29m0.023% ZAR136.1k
Wilhelm Schoeman
Operations Director of Ergo Mining Operations Proprietary Limited5.6yrsR7.04mno data
Francois Bouwer
Group Financial Accountant0yrsno datano data
Kevin Kruger
Managing Director of Far West Gold Recoveries Proprietary Limited1.5yrsno datano data
Henry Gouws
Managing Director of Ergo Mining Operations Proprietary Limited8.3yrsno datano data
Elise Beukes
Company Secretary0.3yrsno datano data
Leonie Marupen
Assistant Company Secretary0yrsno datano data

5.3yrs

Average Tenure

47.5yo

Average Age

Experienced Management: DUB1's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniël Pretorius
CEO & Executive Director11.1yrsR12.93m0.089% ZAR517.2k
Adriaan Davel
CFO & Executive Director5.1yrsR7.29m0.023% ZAR136.1k
Geoffrey Campbell
Independent Non-Executive Chairman14.3yrsR1.51m0.023% ZAR136.1k
Jean Nel
Independent Non-Executive Director1.3yrsR377.00kno data
Edmund Jeneker
Lead Independent Non-Executive Director2.5yrsR916.00kno data
Thulo Moletsane
Chairman of ERGO Mining Operations (Proprietary) Limited0yrsno datano data
Johan Holtzhausen
Independent Non-Executive Director5.8yrsR702.00kno data
Toko Victoria Buyiswa Mnyango
Independent Non-Executive Director3.2yrsR690.00kno data
Kuby Lebina
Director0.2yrsR104.00kno data

4.1yrs

Average Tenure

53yo

Average Age

Experienced Board: DUB1's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29%.


Top Shareholders

Company Information

DRDGOLD Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DRDGOLD Limited
  • Ticker: DUB1
  • Exchange: DB
  • Founded: 1895
  • Industry: Gold
  • Sector: Materials
  • Market Cap: US$631.929m
  • Listing Market Cap: US$581.754m
  • Shares outstanding: 85.51m
  • Website: https://www.drdgold.com

Number of Employees


Location

  • DRDGOLD Limited
  • North Tower
  • 2nd Floor
  • Rosebank
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DUBADB (Deutsche Boerse AG)YesSPON ADR REPSTGDEEURJan 1975
DRDNYSE (New York Stock Exchange)YesSPON ADR REPSTGUSUSDJan 1975
DRD NBMV (Bolsa Mexicana de Valores)YesSPON ADR REPSTGMXMXNJan 1975
DRDG.FOTCPK (Pink Sheets LLC)Ordinary SharesUSUSDDec 1996
DRDJSE (The Johannesburg Securities Exchange)Ordinary SharesZAZARDec 1996
DUB1DB (Deutsche Boerse AG)Ordinary SharesDEEURDec 1996

Biography

DRDGOLD Limited, a gold mining company, engages in surface gold tailings retreatment business in South Africa. The company’s activities include exploration, extraction, processing, and smelting. It recovers gold from surface tailings in the central and western Witwatersrand basin in Gauteng province. The company was founded in 1895 and is headquartered in Rosebank, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 21:53
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.